Rising tariffs, rising costs, rising uncertainty. That’s the current reality for many UK companies navigating the fallout from the latest wave of US trade policy. While tariffs aren’t new, the scope and intensity of the 2025 changes—particularly the new 10% blanket tariff on UK exports to the US—have sharpened the pressure on procurement teams and supply chain leaders alike.
This isn’t just about import/export spreadsheets or customs forms. It’s about strategy, margin, and resilience.
Here’s what I’ve been hearing across my network and online publications.
Tariffs are hitting in two directions: on UK exports heading to the US and on imported goods (or components) from global suppliers. That double impact is creating a squeeze on profit margins, especially for companies that can’t pass costs on to customers or quickly pivot to alternative suppliers.
For fixed-cost industries or those bidding on long-term contracts, that’s a serious challenge.
Several businesses I’ve spoken to are struggling with longer lead times and unexpected delays. For sectors like construction, it’s become particularly painful: key materials like timber and steel are more expensive, harder to access, and slower to arrive.
Even firms that aren’t directly exporting to the US are feeling the knock-on effects, especially those with components sourced from tariff-hit regions like China, Mexico, or the EU.
The short-term response for many companies is tactical: absorb the costs, explain delays, adapt where possible. But behind the scenes, bigger questions are emerging:
It sounds straightforward, but there are complications. For example, some firms are eyeing the EU as an alternative but Brexit-related red tape still creates friction. Others are considering near-shoring, but the cost and infrastructure implications aren’t always viable, especially for SMEs.
The impact varies, but some sectors are particularly exposed:
One of the recurring themes is how much harder it’s become to plan. Unpredictable costs, shifting tariffs, and potential retaliation from other countries have made forecasting almost guesswork.
Add in broader economic headwinds, such as downgraded UK growth forecasts and rising inflation and the planning environment starts to feel less like strategy and more like firefighting.
While most of the mood is cautious, there are a few glimmers:
That said, the general consensus I’ve heard is this: right now, it’s more about protecting margins than chasing growth.
The most forward-thinking firms aren’t waiting for policy clarity—they’re moving proactively:
As one procurement lead put it to me:
“We’ve stopped thinking about efficiency as the top priority. Resilience is the new north star.”
The 2025 tariffs haven’t just changed prices—they’ve reshaped priorities.
UK companies are being forced to re-evaluate long-held supply chain assumptions, rethink sourcing strategies, and invest in operational resilience. For some, this may open up new opportunities. For most, it’s about steadying the ship in a stormy trade environment.
If there’s one takeaway from the conversations I’ve had, it’s this: predictability is out, adaptability is in.
If you’re navigating tariff-related disruption or rethinking your supply chain strategy, I’d be happy to share insights from the market and connect you with leaders who are already helping organisations adapt. Connect with me on Linkedin today!
